# COFFEYVILLE RESOURCES CRUDE TRANSPORTATION, LLC — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 320055027
- **title:** COFFEYVILLE RESOURCES CRUDE TRANSPORTATION, LLC — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2005-06-15
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.402(c)(12), 195.402(c)(3), 195.428(d), 195.440.
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- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/320055027
**body:**

Notice of Probable Violation involving COFFEYVILLE RESOURCES CRUDE TRANSPORTATION, LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(c)(12),  195.402(c)(3),  195.428(d),  195.440. The case was opened on 2005-06-15 and is reported as closed as of 2007-05-30. Proposed civil penalty: $3,000. Assessed civil penalty: $3,000. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

320055027_Final Order_05072007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320055027/320055027_Final%20Order_05072007.pdf

320055027_final order_05072007_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320055027/320055027_final%20order_05072007_text.pdf

320055027_final order_05072007_text.pdf

U. S Department
of Transportation
Pipeline and Hazardous
Materials Safety Administration
400 Seventh Street, S W
Washington, D C 20590
Mr. Keith Osborn
Executive Vice President
Coffeyville Resources Crude Transportation, LLC.
P. O. Box 1566
Coffeyville, Kansas 67337
MAY 7 m~
Re: CPF No. 3-2005-5027
Dr. Mr. Osborn:
Enclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in the
above-referenced case. It makes findings of violation and assesses a civil penalty of $3, 000.
The penalty payment terms are set forth in the Final Order. This enforcement action closes
automatically upon payment. Your receipt of the Final Order constitutes service of that
document under 49 C. F. R, $ 190. 5.
Sincerely,
James Reynolds
Pipeline Compliance Registry
Office of Pipeline Safety
Enclosure
cc: Ivan A. Huntoon
Director, Central Region, PHP-300
CERTIFIED MAIL-RETURN RECEIPT RE UESTED



DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D. C. 20590
In the Matter
Coffeyville Resources
Crude Transportation LLC.
,
Respondent
CPF No. 3-2005-5027
FINAL ORDER
On April 4-7, 2005, pursuant to 49 U. S. C. $ 60117, a representative of the Pipeline and
Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety conducted an
on-site pipeline safety inspection of Respondent's facilities and records in Bartlesville,
Oklahoma, Coffeyville, Kansas and Wichita, Kansas. As a result of the inspection, the Director,
Central Region, PHMSA, issued to Respondent, by letter dated June 15, 2005, a Notice of
Probable Violation and Proposed Civil Penalty (Notice). In accordance with 49 C. F. R. $
190. 207, the Notice proposed finding that Respondent had committed violations of 49 C. F. R.
Part 195, and proposed assessing a civil penalty of $3, 000 for the alleged violations.
By letter dated July 20, 2005, Respondent requested an extension of the 30-day deadline to
respond to the Notice. The Director, Central Region, PHMSA granted Respondent an extension
until September 2, 2005. Respondent responded to the Notice by letter dated August 10, 2005
(Response). Respondent did not contest the alleged violations but submitted information
regarding corrective actions it had taken and requested a reduction in the proposed penalty.
Respondent did not request a hearing, and therefore has waived its right to one.
FINDINGS OF VIOLATION
In its Response, Respondent did not contest the alleged violations in the Notice. Accordingly, I
find that Respondent violated the following sections of 49 C. F. R. Part 195, as more fully
described in the Notice:
49 C. F. R. $ 195. 442(c)(2) (Notice Item 1) — failure to follow procedures for notifying the
public and excavators of a damage prevention program. Respondent did not follow its
written operating and maintenance procedures requiring that annual notifications be made;
alld



49 C. F. R. $ 195. 402(c)(12) (Notice Item 2) — failure to follow written procedures for
establishing and maintaining liaison with emergency responders and public officials.
Respondent did not have records to indicate that it had established liaison with fire, police,
emergency, and other appropriate public officials in either Oklahoma or Kansas for 2003 or
2004.
These findings of violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent.
ASSESSMENT OF PENALTY
Under 49 U. S. C. $ 60122, Respondent is subject to a civil penalty not to exceed $100, 000 per
violation for each day of the violation, up to a maximum of $1, 000, 000 for any related series of
violations.
49 U. S. C. $ 60122 and 49 C. F. R. $ 190. 225 require that, in determining the amount of the civil
penalty, I consider the following criteria: nature, circumstances, and gravity of the violation,
degree of Respondent's culpability, history of Respondent's prior offenses, Respondent's ability
to pay the penalty, good faith by Respondent in attempting to achieve compliance, the effect on
Respondent's ability to continue in business, and such other matters as justice may require.
With respect to Item 1, the Notice proposed a civil penalty of $1, 000 for Respondent's failure to
follow written procedures regarding notification of its damage prevention program. Notifying
excavators of the damage prevention program is important to minimize the potential for third
party damage to the pipelines. We acknowledge that Respondent has initiated corrective
measures to improve the notification system. Respondent, however, has presented no
information that would warrant a reduction in the civil penalty amount proposed in the Notice for
this violation. Accordingly, I assess Respondent a civil penalty of $1, 000 for violating 49 C. F. R.
$ 195. 442(c)(2).
With respect to Item 2, the Notice proposed a civil penalty of $2, 000 for Respondent's failure to
follow written procedures for establishing and maintaining liaison with emergency responders
and public officials. Establishing and maintaining liaison with emergency responders and public
officials is important because emergency responders would likely be required to act in response
to any accidents involving the pipeline. We acknowledge that Respondent has begun
implementing new procedures for establishing and maintaining contact with emergency
responders and public officials. Respondent, however, has presented no information that would
warrant a reduction in the civil penalty amount proposed in the Notice for this violation.
Accordingly, I assess Respondent a civil penalty of $2, 000 for violating 49 C. F. R.
195. 402(c)(12).
For the forgoing reasons, having reviewed the record and considered the assessment criteria, I
assess Respondent a total civil penalty of $3, 000. There is nothing in the record indicating that
payment of this penalty would adversely affect Respondent's ability to continue in business.
Payment of the civil penalty must be made within 20 days of service. Payment may be made by



sending a certified check or money order (containing the CPF Number for this case) payable to
"U. S. Department of Transportation" to the Federal Aviation Administration, Mike Monroney
Aeronautical Center, Financial Operations Division (AMZ-300), P. O. Box 25082, Oklahoma
City, OK 73125.
Federal regulations (49 C. F. R. $ 89. 21(b)(3)) also permit this payment to be made by wire
transfer, through the Federal Reserve Communications System (Fedwire), to the account of the
U. S. Treasury. Detailed instructions are contained in the enclosure. Questions concerning wire
transfers should be directed to: Financial Operations Division (AMZ-300), Federal Aviation
Administration, Mike Monroney Aeronautical Center, P. O. Box 25082, Oklahoma City, OK
73125; (405) 954-8893.
Failure to pay the $3, 000 civil penalty will result in accrual of interest at the current annual rate
in accordance with 31 U. S. C. $ 3717, 31 C. F. R. $ 901. 9 and 49 C. F. R. $ 89. 23. Pursuant to
those same authorities, a late penalty charge of six percent (6%) per annum will be charged if
payment is not made within 110 days of service. Furthermore, failure to pay the civil penalty
may result in referral of the matter to the Attorney General for appropriate action in a United
States District Court.
WARNING ITEMS
With respect to Items 3 and 4, the Notice alleged probable violations of Part 195 but did not
propose a civil penalty or compliance order for these items. Therefore, these are considered to
be warning items. The warnings were for:
49 C. F. R. $ 195. 428(d) (Notice Item 3) — failure to document inspection or
testing of overfill protection systems. Respondent did not have specific records
documenting inspection or testing of the overfill protection systems for the
Oklahoma and Kansas pipelines; and
49 C. F. R. $ 195. 440 (Notice Item 4) — failure to establish a continuing education
program for government or local officials. Respondent did not have records to
indicate that it was conducting continuing education for government or local
officials along the Oklahoma and Kansas pipelines.
Respondent presented information in the response showing that it had taken action toward
addressing the cited items. Having considered such information, I find that these items constitute
probable violations under 49 C. F. R. $ 190. 205, and Respondent is hereby advised to correct
such conditions. In the event that PHMSA finds a violation of said items in a subsequent
inspection, Respondent may be subject to future enforcement action.
Under 49 C. F. R. $ 190. 215, Respondent has a right to submit a petition for reconsideration of
this Final Order. Should Respondent elect to do so, the petition must be received within 20 days
of Respondent's receipt of this Final Order and must contain a brief statement of the issue(s).
The filing of a petition automatically stays the payment of any civil penalty assessed. However,
if Respondent submits payment for the civil penalty, the Final Order becomes the final



administrative decision and the right to petition for reconsideration is waived. The terms and
conditions of this Final Order are effective on receipt.
ffre . Wiese
A in Associate Administrator
fo ipeline Safety
Date Issued
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